Compact Agreement

In the United States, an intergovernmental pact is a pact or agreement between two or more states or between states and a foreign government. The compact clause (Article I, Section 10, clause 3) of the United States Constitution provides that «no state may be authorized without the consent of Congress. Entering into an agreement or pact with another state or foreign power,…»[1] Treaties between states that were ratified under the Articles of Confederation during the period following American independence in 1776 until the ratification of the current U.S. Constitution in 1789 are treated as intergovernmental treaties. These include agreements such as the Treaty of Beaufort, which established the border between Georgia and South Carolina in 1787 and is still in force. In US Steel Corp. v. The Multistate Tax Commission considered that an intergovernmental pact to facilitate the collection and allocation of public taxes was not contrary to the covenant clause. [29] The Court has indicated[30] that the effect of a covenant on non-condensed states would not be problematic under the covenant clause, unless the pact put pressure on non-condensed states that violated the trade clause[31] or the privilege and immunity clause. [32] At Northeast Bancorp.

v. Board of Governors told the Tribunal that congressional approval would be required for a pact that would increase the political power of state compression «to the detriment» of non-compact states. [33] The internal rules governing the management of activities under an intergovernmental pact may include, for example, that the approaches of the pacts to their management are different. . . .